Wednesday 21 November 2018

PetroNeft sees 'excellent' result in Russia

A Petroneft pipeline in Siberia
A Petroneft pipeline in Siberia
Ellie Donnelly

Ellie Donnelly

Dublin-listed oil and gas explorer PetroNeft said it had strong results from well testing at a prospect in Siberia.

Chief executive Dennis Francis said he expects the results to spark interest in the project from potential buyers or investors.

The company has two projects in the region - Licence 61 and 67. The positive well test relates to the latter.

It has engaged advisers relating to a potential sale of Licence 61 however, with Mr Francis's comments yesterday raising the possibility that both could be sold.

He said that the good well test result "clearly expands the company's options for returning value to shareholders".

Regarding the sale of Licence 61, he said PetroNeft had seen "a high level of interest from a range of well-financed industry players." The company was previously the subject of a boardroom battle as largest shareholder Natlata clashed with management over the direction of the business.

Eventually an agreement was reached which saw Natlata's ultimate beneficial owner Maxim Korobov join the PetroNeft board.

Mr Korobov is a former member of the Russian parliament.

Irish Independent

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